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Lean Supply Chain Value Stream

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A lean supply chain value stream aims to develop an appropriate road map to improve your end-to-end supply, production and distribution value chain

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Lean Supply Chain Value Stream

  1. 1. Supply Chain Value Stream Allen Wang
  2. 2. Supply Chain Value Stream Strategy – Driving a lean Supply Chain cost-effectiveness Procurement Plan Supply Chain Sales Forecast Planning Purchase Production Delivery Supplier Improve Reduce Customer Inventory Inventory Improve OEE Accuracy level Improve Shorten on- order fulfill time delivery rate Level VMI JIT production Network & Continuous Risk Inventory Improveme optimization nt Control2
  3. 3. Segmenting Supply Chain Process – Push vs Pull Supply Chain Planning Customer Supplier Purchase Production Delivery R R R R FG Remote RW Production Warehouse Warehouse warehouse Line R Reorder point3 PULL PUSH
  4. 4. Gains to End-to-end Supply Chain Supply Chain Planning Customer Supplier Purchase Production Delivery RW Production FG Remote Warehouse Warehouse Line Warehouse Prod Cost Inventory Cost Warehouse cost Transport cost Gains Equipment Re-order point Warehouse area Transport Mode •Supply chain cost Labor Min-Max MHE Order Size savings Inventory loss Safety Stock Labor Order Frequency •Inventory Accuracy Cycle stock System Trans route •Shorten Order Inventory holding Rental response time cost •Reduce inventory cost4
  5. 5. Lean Supply Chain Value Stream - Technology Supply Chain Planning Customer Supplier Purchase Production Delivery Purchase Order Sales Forecast MRP MPS DRP •BOM •Supply Chain Planning Strategy •Replenish Plan •RW inventory •Master Production Schedule •Network Configuration •Procure Schedule •Production Capacity •Inventory Level •Inbound Logisitics •Re-order Point Inbound Inventory Inventory FG Network VehicleTechnology Network Building Optimization Optimization Routing Optimization Schedule 5
  6. 6. Lean Supply Chain Value Stream – Process & Engineering Supply Chain Planning Customer Supplier Purchase Production Delivery Purchase Order Sales Forecast MRP MPS DRP •BOM •Supply Chain Planning Strategy •Replenish Plan •RW inventory •Master Production Schedule •Network Configuration •Procure Schedule •Production Capacity •Inventory Level •Inbound Logistics •Re-order Point Process Segmenting Supply Chain Process – Sales & Operation Planning •Milk Run •RW warehouse solution •Network OptimizationEngineering •JIT Delivery •Inbound Network Opt •Route Optimization •VMI •Level Production •DC Coverage 6

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